STRATEGIC FINANCIAL MANAGEMENT REVISION 1. Selling Currency Call Options. Mike Suerth sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76‚ and the spot rate at the time the option was exercised was $.82. Assume Mike did not obtain Canadian dollars until the option was exercised. Also assume that there are 50‚000 units in a Canadian dollar option. What was Mike’s net profit on the call option? ANSWER: Premium received per unit = $.01 Amount per unit
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Take Home Chapter 8-9 Student: ____________________________________________________________ _______________ 1. The difference between an investment ’s market value and its cost is called the: A. present value. B. net present value. C. capital value. D. cash flow. E. net income. 2. The payback period is the period of time it takes an investment to generate sufficient cash flows to: A. earn the required rate of return. B. produce the required net income. C. produce a yield equal
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Financial Management Final Exam 3/2/2013 Q1. Calculating NOPAT: NOPAT = Operating Income (EBIT) x (1 – Tax) Operating Income (EBIT) = 700 Tax = 0.35 NOPAT = 700 x (1 – 0.35) = $455.00 Q2. Income Statement: Income Statement (EUR) Sales 15‚000 Operating cost 7‚500 Depreciation 1‚200 Amortization 0 Bonds 6‚500 Bonds interest 6.25% Tax rate (income) 35% EBIT = Sales – Operating cost – Depreciation – Amortization EBIT = 15‚000 – 7‚500 – 1‚200 – 0 EBIT = EUR 6
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Chapter 10 The Cost of Capital Learning Objectives After reading this chapter‚ students should be able to: Explain what is meant by a firm’s weighted average cost of capital. Define and calculate the component costs of debt and preferred stock. Explain why the cost of debt is tax adjusted and the cost of preferred is not. Explain why retained earnings are not free and use three approaches to estimate the component cost of retained earnings. Briefly explain the two alternative approaches
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CIA-3 MANAGEMENT OF FINANCIAL SERVICES DOES FOREIGN EXCHANGE RESERVE AFFECT EXTERNAL COMMERCIAL BORROWINGS– INDIAN PRAGMATIC INDICATION SUBMITTED TO T.S.RAMACHANDRAN Review of Research Paper Citation: UmanathKumarasamy‚Does foreign exchange reserve affect external commercial
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THE UNIVERSITY OF WARWICK Examination: Summer 2009 FINANCIAL MANAGEMENT SPECIMEN ANSWERS Turn Over IB1140 Page 2 of 18 ---------------------------------------------------------------------------------------------------------------SECTION A Answer ALL of the questions in this section Each question is worth 2 marks ---------------------------------------------------------------------------------------------------------------1. Which of the following statements is most consistent with the
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BA – 316 Project Part 1 Identify a company Look at financial statements (from previous years‚ at least one year) Conduct ratio analysis. Use Dupont equation from results.. Make a financial statement Organize and Analyze Statements Make recommendations – how will you improve the forecast Strengths‚ weaknesses‚ etc. Part 2 Forecasting – Statistical Analysis Standard Goal of 10% Determine location of new funds (borrowing‚ issuance of stocks‚ capital)
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International Journal of Business and Management Vol. 3‚ No. 11 The Business Strategy of Mcdonald’s Jing Han School of Economics‚ Yunnan University No.2Green lake north Road‚ Kun Ming‚ Yunnan 650031‚ China E-mail: hanjing0928@hotmail.com Abstract As one of the most successful fast food chain in the world‚ throughout the development of McDonald’s‚ we could easily identify many successful business strategy implementations. In this paper‚ I will discuss some critical business strategies
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Middlesex University Dubai MBA Module 4643 Financial Management and Economics Individual Assignment Toni Munns Student ID: M00383523 February 2012 Module Leader: Dr Rajesh Mohnot Word Count: This essay provides input to the marketing strategy for the first half of 2012 for The McKenzie Hotel Group’s newest hotel‚ a luxury 5 Star property on the Palm Jumeirah in Dubai. The input provided has considered the service on offer‚ cost scenarios‚ target markets‚ supply and demand effects‚ market
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As we all know‚ companies are in business to make money. A company may have the best product on the market or in every household but the question still remains. Are they making money? In this section‚ we will be taking a detail look at the financials of Apple since the lunch of the first Iphone in 2007. On June 29‚ 2007 (the first day of the Iphone) apple was trading at $ 121 dollars a share. At year end September 29st 2007‚ just three months after the first Iphone release‚ Apple was trading
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